
WASHINGTON — The House Budget Committee, under Republican leadership, has voted along party lines to move forward with an extensive budget proposal aimed at drastically reducing taxes and government spending by trillions.
The 21-16 vote, following an exhaustive daylong session, sends the budget resolution to the full House, where Republicans must rally their slim majority to secure its passage. The resolution also mandates committees to develop a comprehensive package that aligns with President Donald Trump’s priorities in areas such as immigration, taxation, and more.
This budget blueprint outlines a potential $4.5 trillion increase in new deficits due to tax reductions, which Republicans intend to utilize to prolong Trump’s 2017 tax legislation and to implement additional aspects of his tax agenda.
It proposes $1.5 trillion in spending cuts, stipulating that the House’s package must encompass $2 trillion in reductions from “mandatory” federal expenditures, which include essential programs like Medicare, Medicaid, and the Supplemental Nutrition Assistance Program (SNAP), or the $4.5 trillion in tax reductions must be offset by equivalent spending cuts.
“This budget resolution sets the fiscal foundation for what could become one of the most significant pieces of legislation in contemporary history, serving as the primary avenue to fulfill President Trump’s America First vision,” stated Budget Committee Chair Jodey Arrington, R-Texas. “The time of excessive and politicized government spending is coming to an end.”
“We must seize this pivotal moment and stand with President Trump as we make the difficult choices necessary to ensure our republic’s future for generations to come,” Arrington emphasized following the resolution’s passage. “This is our final, best opportunity to accomplish that.”
Republicans dismissed numerous Democratic proposals aimed at safeguarding critical programs for the middle class, as well as calls for increased taxes on the wealthier demographic and corporations.
In a contrasting move, the Senate Budget Committee passed a conflicting budget resolution on Wednesday, sidestepping the tax issue, which presents a challenge that the party will need to address before any legislation can advance.
Democrats criticized the House GOP’s budget proposal, claiming it would negatively impact the middle class.
“This budget proposal deprives millions of their healthcare while allocating $4.5 trillion in tax breaks, predominantly benefiting billionaires and large corporations,” remarked Rep. Brendan Boyle, D-Pa., the lead Democrat on the Budget Committee. “It proposes a $230 billion cut to food assistance programs amid soaring grocery prices. Furthermore, it suggests at least $880 billion in reductions to Medicaid and the Affordable Care Act… All to provide unnecessary tax cuts for the wealthy while hard-working Americans cannot afford to bear the burden.”
Next Steps for the GOP Budget
While Republicans made headway in the committee on Thursday, the most significant challenge — the actual drafting and approval of a substantial bill covering taxes, border security, military, and energy policies — remains ahead.
Before the vote, Rep. Andy Harris, R-Md., the chair of the House Freedom Caucus, indicated that an amendment discussed during the Budget Committee session “will provide the flexibility to enhance tax cuts if there is additional deficit reduction in the bill.”
Harris expressed confidence that the Freedom Caucus would support the budget resolution as long as the amendment is included, which he stated was an agreement established with GOP leadership.
“If you exceed $2 trillion in deficit reduction in those other committees, that would enable an increase in tax cuts,” Harris explained. The proposed budget resolution aims to achieve a $2 trillion reduction in mandatory spending. Some conservatives had been advocating for a higher target.
However, if Republicans struggle to identify $2 trillion in cuts, they will need to reduce the $4.5 trillion tax amount, a figure that House Ways and Means Committee Chair Jason Smith, R-Mo., has warned may fall short of fulfilling their objectives. Achieving $2 trillion in spending reductions could prove difficult without impacting Medicaid and other anti-poverty initiatives.
Rep. Chip Roy, R-Texas, a Budget Committee conservative, met with House Speaker Mike Johnson, R-La., the evening prior to the markup but declined to disclose the discussions that took place.
“I think it’s a crucial framework we’re aiming for, and we’re trying to establish a model driven by direct financial accountability,” he noted.
This structure, however, presents potential difficulties for House Republicans as they draft the policy. The budget resolution must be agreed upon by both chambers and is merely a preliminary step forward.
“Many members seem to be placing too much expectation on this budget resolution,” said moderate Rep. Nick LaLota, R-N.Y., during an interview with NBC News. “It simply unlocks the next phase. The upcoming phase is where we may face more substantial disagreements.”
Republicans from high-tax blue states, such as New York, are eager to ensure that their tax legislation increases the current $10,000 cap on the state and local tax deduction (SALT), which the GOP established in 2017. LaLota expressed confidence that SALT will be addressed, but he made it clear he would not support any bill lacking SALT relief.
It remains uncertain whether the proposal will leave enough space for Trump’s other priorities, like eliminating taxes on tips, overtime pay, and Social Security benefits, all of which could significantly inflate the national debt.
Rep. Nicole Malliotakis, R-N.Y., mentioned she has voiced her “concerns” to the leadership regarding the prospect of significant spending cuts and conveyed to reporters that she seeks “greater clarity” about the subsequent steps before endorsing the budget resolution — particularly regarding any cuts.
“A $4.5 trillion cut doesn’t provide much leeway for the president’s initiatives,” Malliotakis stated. “I am particularly wary of any deeper reductions to Medicaid unless those cuts target inefficiencies and waste, ensuring proper work requirements, and that non-citizens are ineligible. Outside of that, I oppose cuts that may adversely affect hospitals or organizations supporting people with developmental disabilities.”
On the SALT issue, Malliotakis indicated that she consistently reminds leadership about this tax priority, even gifting Smith “salted caramels” on Thursday as a Valentine’s gesture.